101% house price rise for Wales' top beauty spots

Home buyers pay hefty premiums to live in the country’s National Parks

House prices in Wales’ three National Parks have increased by 101% in a decade, as home buyers pay hefty premiums to live in the country’s top beauty spots.

Snowdonia National Park has experienced the highest percentage increase of any National Park in England and Wales, with the price of homes rising by 111% since 2012, according to figures compiled by Lloyds TSB.

Meanwhile homes in Pembrokeshire Coast National Park have seen the third-biggest price rise of 106% over the same period while properties in the Brecon Beacons have experienced a 86% rise.

The Lloyds TSB National Parks Review tracks house price movements in 12 of England and Wales’ National Parks, based on data from the Land Registry and the Office for National Statistics (ONS).

Tim Goodwin, director of North Wales-based estate agents Williams and Goodwin The Property People, said he was not surprised to see house prices in Snowdonia on the rise.

He said: “The area is of course extremely beautiful and gets lots of publicity so the demand is there.

“But because of stricter National Park planning regulations and the sheer topography of the place the supply of homes is not as great, so you have a recipe for price rises.

“Looking at the area generally, when we set up this business ten years ago the average price of houses in Anglesey was £56,000 but by last year it had grown to £167,000.

“There has been a big rise in prices here, particularly over the past five to six years, but I think we’re in for a period of correction now.

“There’s always going to be a premium for National Park homes though, mainly because the supply of homes there is likely to remain low while the demand is only going to grow.”

Despite the steep rises, Snowdonia is still the most affordable National Park in England and Wales, with an average house price of £167,773.

Mr Goodwin said a broad mix of people are attracted to Snowdonia, from mountaineers to “returners” who grew up in the area and want to return after making money elsewhere.

A spokesman for Lloyds TSB said: “National Park homes now cost over ten times the average earnings.

“And home buyers must pay nearly £90,000 extra to reside in some of the nation’s most iconic beauty spots.

“House prices in the National Parks of England and Wales in 2012 are, on average, £87,968 higher than their county average.

“This premium is £31,342 higher than in 2002 when it was £56,626.”

The average house price in National Parks across England and Wales has risen by 87% over the past ten years, from £194,924 in 2002 to £365,259 in 2012.

The Lloyds TSB National Parks Review says: “Homeowners in five of the 12 National Parks examined have seen the value of their home more than double over the past decade.

“Snowdonia recorded the biggest increase with a 111% rise, followed by the North York Moors and the Pembrokeshire Coast.

“In contrast, the Broads recorded by far the smallest rise in house prices over the past ten years with a gain of just 19%.”

In keeping with the sharp rise in price, the review shows home affordability in National Parks has deteriorated significantly over the past decade. The average National Parks house price of £365,259 in 2012 is, on average, 10.8 times higher than average gross annual earnings.

Suren Thiru, housing economist at Lloyds TSB, said: “The quality of life benefits associated with living in the some of the country’s most scenic destinations resonate strongly among many home buyers. “Such destinations are also popular with those looking for a second property. As a result, properties in National Parks typically trade at a significant premium to homes in neighbouring areas.

“The downside of high property prices is that homes are often difficult to afford for those living and working in such locations; a situation that has got worse over the past decade as prices have risen sharply.”

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